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9 Key Strategies for Managing Performance in the Age of IT Transformation

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DEJ's study of 1,079 organizations identified 13 key areas of IT transformation. This document provides more context around how IT transformation impacts managing performance of IT services and recommends 9 strategies.

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9 Key Strategies for Managing Performance in the Age of IT Transformation

  1. 1. 9 Key Strategies for Managing Performance in the Age of IT Transformation Derived from DEJ’s market study – “13 Key Trends Transforming the IT in 2020” Digital Enterprise Journal, March 2020
  2. 2. 71% 13 Key Trends 1 - Emergence of “Technology-as-a-Competitive-Advantage” Advantage” (TaCA) 2 - IT transformation beyond technology deployments 3 - Customer becoming a key focal point of IT 4 - Power shift – advantage DevOps and engineers 5 - Velocity and pace of change 6 - Understanding limits of manual work 7 - Business taking things into their own hands 8 - Increased focus on employee experience 9 - Speed to the market 10 - New role of IT Operations 11 - Continuous everything 12 - Importance of microservices and cloud for innovation innovation 13 - APIs and integration defining modern IT Reported that IT transformation is making managing IT performance more challenging DEJ's study of 1,079 organizations identified 13 key areas of IT transformation. This document provides more context around how IT transformation impacts managing performance of IT services and recommends 9 strategies. Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  3. 3. Reported creating new experiences for users as a source of competitive advantage Creating a business advantage 46% Improving customer experiences and creating new ones is a task that is on top of the list for both business and technology executives and finding a way to work together towards this goal will determine the success of business strategies in 2020. Reported the inability to prevent performance issues before users are impacted as a key challenge for managing IT performance IT performance 64% It is nearly impossible to use customer experience as a source of competitive advantage if organizations are learning about performance of digital services from customer complaints. It all starts with preventing performance issues Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  4. 4. 55% 57% 59% 41% 52% Performance of microservices is key for driving innovation Reported driving innovation as the key reason for deploying microservices Not able to automatically discover service elements Reported an increase in resources required for management Reported a lack of capabilities for understanding the relationship between containers and service components Reported time to understand the impact of new deployments as a key challenge Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  5. 5. Reported a lack of capabilities for automated pattern recognition as a key challenge for preventing IT performance issues Increase in number of organizations reporting that “throwing more people at a problem” is not a viable solution, over the last 12 months Reported volume and velocity of data and events to be processed as a key challenge for IT performance management Deployments of autonomous technologies in the IT are a different game than in some other sectors. For the IT, these capabilities are not "nice to have", but are becoming a necessary requirement for completing daily tasks. 28% AI and automation capabilities are no longer optional Reported increase in IT tasks that are not humanly possible to complete at optimal level over the last 12 months 51% 51% 34% Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  6. 6. 4.5x - Increase in number of organizations making software a core part of their business strategy since 2017 Business transformation 2.2x – Increase in number of organizations in which DevOps plays a strategic role Importance of DevOps 3.3x - Increase in SRE adoption since 2017 Emergence of SRE 41% - Looking to extend code feedback loops to include production performance Continuous reliability Managing production performance shifting left 26% Reduction in IT Operations responsibilities for production performance since 2017 Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  7. 7. Experience Increase in importance of employee experience over the last 18 months 64% Productivity Increase in importance of employee productivity over the last 18 months 16% Visibility Reported that the metrics IT is using do not reflect true user experience 71% Understanding a true user experience is becoming even more important IT leaders are understanding that the definition of user experience is changing and goes beyond traditional metrics such as availability and latency and, as a result, are becoming increasingly interested in solutions that provide visibility into a true user experience. Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  8. 8. Modernized IT Operations becoming a firewall for digital transformation Increase in number of organizations that are focusing IT Operations efforts on ensuring returns from new technology investments since 2017 Increase in number of organizations using technology to differentiate from competitors since 2017 Decline in number of organizations with troubleshooting as a main focus of their IT Ops efforts since 2017 Reported that they redefined their IT Operations strategies over the last 18 months Deploying, or looking to deploy, real-time platform with AI/ML driven automation capabilities Adopted ,or looking to adopt, customer-centric approach for managing IT Modifying their strategy to meet specific requirements of monitoring cloud and microservices Over the last 18 months, the research shows an increase in the need for IT Operations to transform and create a business value by focusing on ensuring returns from deployments of transformational technologies. 2.1x 40% 23% 41% 39% 40% 51% Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  9. 9. 6.7x 3.1x 91% 52% 59% Managing cloud performance is a key requirement, not a use case Increase in deploying cloud services to drive innovation since 2014 Increase in missed revenue due to slow software delivery since 2016 Increase in missed revenue due to performance and availability issues since 2016 Reported the importance of agility for achieving key business outcomes increased over the last 12 months Increase in capabilities for managing hybrid cloud as a key selection criteria over the last 18 months The research shows that there is a stronger business impact from issues with cloud performance as compared to on-premise managed IT services. Therefore, managing cloud performance can no longer be just a use case, but a key requirement for deploying IT performance management solutions. Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  10. 10. 38% Each of the 13 areas of IT transformation is driven by business pressures and IT's success or failure in addressing them will be evaluated by the impact on business outcomes. Translate everything to the language of business Reported that LoB has become more involved in the evaluation process of IT solutions over the last 18 months Business professionals described their interest in learning more about technology features and functionalities as “low” or “very low” Reported increased importance of creating a business case for technology purchases over the last 12 months39% Increase in number of organizations that are evaluating IT solutions based on their impact on business outcomes over the last 12 months 32% 58% Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  11. 11. Don't fight the change, embrace it While most organizations see areas such as the need for integration, dealing with large volumes and velocity of data and increased customer expectations as a challenge, TPOs are putting capabilities in place to turn these market dynamics into new business opportunities. KPIs Top Performing Organizations (20%) All others Success rate in modernizing IT infrastructure 77% 42% Percent of IT budgets available for growth and innovation 48% 29% Customer satisfaction score 94% 74% Copyright © 2020 Digital Enterprise Journal. All Rights Reserved.
  12. 12. Focus on business outcomes Methodology framework leveraging a multi-step approach to connect vendor's differentiators with business outcomes Situational analysis Providing actionable recommendations to user organizations based on their individual requirements User Insight Platform Ongoing, personalized approach for research data collection and analysis Business model Ability to continuously leverage up-to- date research in each stage of the buying cycle & sales funnel Bringing together the most advanced concepts from analyst research and media industries Contact DEJ Copyright © 2020 Digital Enterprise Journal. All Rights Reserved. About DEJ

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